Coastal Tourism and Hospitality: Fiscal Support

Tourism is crucial for coastal communities, supporting local businesses and services. However, challenges such as an ageing ferry fleet, labour shortages, housing availability, and regulatory burdens hinder growth. The short-term let licensing scheme adds costs and compliance issues for small operators in remote areas.

Praised the importance of tourism and hospitality for local economies, highlighting that in 2019 these industries contributed £134 billion to the UK economy. Emphasised the challenges faced by coastal communities due to inflation, rising rents, and business rates, noting VisitBritain data showing 10% of inbound tourists visited England's coasts in 2019. Called for a Government review on business rates as promised in the 2019 manifesto but not implemented.

The MP discussed the importance of tourism and hospitality in Strangford, highlighting various attractions such as Mount Stewart and local businesses like Glastry Farm ice cream. He mentioned challenges faced by these businesses due to weather conditions and increased costs. The MP emphasized the need for financial support from the government through the Barnett consequentials and block grant system.

Tourism around the British coast is vital for the UK economy. Peter Aldous highlighted the tourism and hospitality industry in the Lowestoft and Waveney area, emphasizing the impact of high energy costs and delays in obtaining planning permission on local businesses. He called for fiscal measures such as capping business rates increases at 3%, cutting employer national insurance contributions to 10%, and speeding up fair funding reviews.

Thanked the hon. Friend for securing the debate and acknowledged her compelling fiscal case for reforms necessary to support coastal communities. Highlighted the need for supply-side reforms in addition to fiscal measures, focusing on public services such as NHS doctors, education, employment, and banking facilities to help these communities thrive.

Sally-Ann Hart acknowledged the Government's efforts to support tourism and hospitality sectors, highlighting the importance of strategic investment in infrastructure for coastal communities. She noted that Hastings and Rye supports over 12,600 jobs with an estimated £550 million annual turnover, but emphasised the need for specific fiscal support due to underfunding challenges. Hart called for increased funding for essential infrastructure and facilities, as well as measures to mitigate national minimum wage increases and seasonal tourism pressures.

Thanked the hon. Friend for securing today's debate and highlighted the importance of supporting the hospitality and tourism industry in Devon, which supports thousands of jobs. Emphasised the need to build on existing support and called for specific fiscal measures such as a 3% cap on property business rates, reduction in employers' national insurance contributions, and permanently reducing VAT rate for hospitality businesses.

Agrees with Selaine Saxby's concerns about the impact of VAT thresholds and supports reducing VAT for hospitality businesses to 12.5%.

He highlighted the financial hardship faced by coastal and rural communities in Scotland due to Brexit, the pandemic, energy price shocks, and inflationary spikes. Between March 2020 and the end of 2022, a staggering 10% of UK hospitality businesses closed permanently, with more than 500 pubs and breweries closing in Scotland alone in 2023. He cited rising energy costs as a significant issue, with nine out of 10 hospitality businesses facing higher energy and supplier costs. Bonnar also discussed the negative impacts of Brexit on rural communities, including increased costs and delays due to border controls on fresh food and flowers, amounting to over £500 million annually. He emphasised that pubs and cafés are essential social hubs fostering community cohesion and combating loneliness.